Proposed gambling tax will not meet government targets

By Constantinos Psillides

The House Finance Committee has questioned government plans to push legislation to increase taxation on winnings from OPAP games and the national lottery, in an attempt to secure the €20 million projected by the troika memorandum.

According to deputy committee chair Angelos Votsis, troika technocrats expected a €20 million gain on taxing OPAP games (Joker, Proto, Lotto, Super 3, Kino, Extra 5, Propo) but only received €2 million.

But at a committee meeting on Monday, deputies heard that when calculating the amount expected from taxing OPAP games and the national lottery, troika technocrats took into account the whole amount awarded and didn’t consider that taxation applies only for winnings over €5,000. Taxation rates had been decided by the House in 2012.

The finance ministry has proposed a new taxation policy under which a 15 per cent tax will be imposed on winnings from €100 to €500 and a 20 per cent tax on winnings over €500. But even that increase will not make up the shortfall, according to Votsis.

“If the proposed amendment of taxation is implemented, it will still yield only 10 million euros, not 20 million which is our goal. It will also result in unfair competition for OPAP and may boost illegal betting,” said Votsis, adding that the amendment has been sent back to the finance ministry for reconsideration.

DISY MP Prodromos Prodromou noted that the government has to take into consideration the fact that other forms of betting is not subjected to taxation and also the fact that OPAP has a monopoly in some forms of gaming.

Greens MP Giorgos Perdikis said that the first troika-proposed taxation didn’t work and instead drove people to illegal gaming, which is rampant.

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